A properly funded special needs trust preserves eligibility for Medicaid and supplemental security income, while ensuring loved ones receive necessary support. These trusts can provide lasting financial security, simplify administrative burdens, and coordinate Medicaid-approved care. Proper planning minimizes risks and reduces the chance of inadvertent disqualification during life transitions.
A streamlined process reduces paperwork and ensures timely distributions, with clear reporting to guardians and the court when required. Regular reviews keep the plan aligned with changing laws and family goals.
Our firm focuses on guardianship, estate planning, and care coordination, with a practical, client-centered approach that explains options in plain language and keeps you informed at every step along the way.
We conduct periodic reviews, address life changes, and amend documents to reflect new beneficiaries, funds, or law, ensuring the plan stays current for years to come.
A special needs trust is created to hold assets for a beneficiary while preserving eligibility for needs-based programs. It allows covering supplemental expenses without directly using assets that would affect Medicaid or SSI. In North Carolina, proper drafting and trustee oversight ensure compliance with state and federal rules. During the initial consult, we explain funding options, eligibility considerations, and the importance of ongoing administration to prevent unintended disqualifications and to ensure funds reach the beneficiary.
A special needs trust is designed for individuals who require ongoing supports while protecting public benefits. There are different forms—first-party, third-party, and pooled trusts—each with specific funding rules and long-term effects on eligibility. The right choice depends on the family’s goals and finances. We help you evaluate whether a first-party or a third-party trust best fits your situation, along with costs and administration involved.
Funding options include cash, securities, life insurance, and real estate. The document should specify how funds are used for the beneficiary’s supplemental needs while remaining compliant with Medicaid rules. We guide families on avoiding direct payments for basic needs that could jeopardize benefits, using the trust for eligible expenses such as therapies, education, recreation, and housing support.
Typically, properly drafted special needs trusts do not count as assets for SSI or Medicaid if funded and administered correctly, but improper use can affect eligibility. We review the specific benefits program rules and help you structure distributions to maintain eligibility while meeting the beneficiary’s needs.
Creating a trust can take several weeks to months, depending on document complexity, funding, and coordination with government programs. The process includes drafting, reviews, and final execution. We aim to streamline timelines by providing clear milestones, timely responses, and coordination with other professionals such as financial planners and guardians.
Costs vary with complexity and whether a trust is funded with existing assets or created as part of broader estate planning. Many firms offer transparent flat fees or hourly rates. We provide a detailed estimate during the initial consult and discuss any ongoing administration or trustee fees so there are no surprises.
A well-drafted special needs trust typically includes provisions for amendment or termination, if permissible under the terms and governing law. We explain when amendments are advisable and how to arrange for a successor trustee, ensuring continuity and compliance with beneficiary needs and program rules.
Documents commonly needed include proof of identity, existing trusts, asset information, guardianship documents, and beneficiary details. For new clients, a list of questions about family goals, healthcare preferences, and benefits planning helps shape the trust design.
Selecting a trustee is critical. The trustee should understand the beneficiary’s needs, maintain records, and ensure compliance with program rules. Often families choose a trusted relative, professional fiduciary, or an experienced attorney as trustee, with a plan for successor trustees.
Ongoing administration includes distributions, record-keeping, annual reporting, and coordination with benefit programs. We offer guidance on reviewing the trust periodically to reflect changes in law, beneficiary needs, and funding availability.
